WASHINGTON – The U.S. Senate health care bill released Wednesday contains at least $100 million to plug an upcoming financial loss in Louisiana Medicaid health insurance for the poor.
U.S. Sen. Mary Landrieu – whose vote is viewed as crucial to passage of the legislation —pushed for the money, which was provided in the bill offered by its author, Senate Majority Leader Harry Reid of Nevada.
Though the provision in the bill was estimated by the Congressional Budget Office at $100 million, state Department of Health and Hospitals Secretary Alan Levine said the state needs about $500 million.
“I’m glad the language is in the bill as it is at least a recognition of our problem,” Levine said. “But we have more work to do. I appreciate Sen. Landrieu’s help and we are continuing to work with her.”
Reid and Landrieu representatives were quick to say Thursday that the money was not tied to trying to gain Landrieu’s vote on the bill.
Landrieu is one of four Democrats who has said she would not support a bill that contains a government-run insurance program. Reid needs all 60 Democratic senators to vote for the legislation in order for it to pass.
With a big vote looming this weekend on whether the bill will be offered up for debate, Landrieu said she is “neutral” on a measure. Earlier in the week she said she was leaning “no” in her support.
Landrieu, chairwoman of the U.S. Senate Small Business and Entrepreneurship Committee, has said she wants safeguards in the measure to protect small businesses.
She said she is also concerned about the $849 billion cost of the bill. The $100 million doesn’t figure into the equation, said Landrieu spokesman Rob Sawicki.
“If this bill doesn’t contain these things, this would not be enough to get her to support it,” he said.
The money would be a one-time fix for the state, said Jim Manley, Reid’s spokesman. Manley also said that the funding was not offered to sway Landrieu’s vote.
ABC News broke the story on the funding Thursday, finding a provision on page 432 of the 2,074-page Senate bill. The section increases Medicaid subsidies for “certain states recovering from a major disaster.” The section describes the states over two pages as states that “during the preceding 7 fiscal years” have been declared a major disaster area – Louisiana.
The state has been struggling with the Medicaid funding issue, known as the Federal Medical Assistance Percentage or FMAP. The U.S. Department of Health and Human Services formula is based on per-capita income over a three-year period.
Because Louisiana saw income rise due to the rebuilding after Hurricanes Katrina and Rita, state officials said that the FMAP formula was artificially high. The percentage of federal Medicaid assistance would drop from last October’s 72 percent to 64 percent next year. The state is currently at 81 percent due to an influx of national stimulus dollars.
Republican U.S. Rep. Anh “Joseph” Cao of New Orleans recently filed legislation seeking relief from the federal funding formula. The bill is co-sponsored by four House delegation members including Republican U.S. Rep. Bill Cassidy of Baton Rouge.